HMO Index Sees Worst Selloff in 8 Months

The Morgan Stanley Healthcare Payors Index is having its worst day in eight months on news Ohio will not renew contracts to four current Medicaid providers: Molina Healthcare , Centene Corp., WellCare Health Plans and Amerigroup Corp. .

MOH and CNC, two managed-care companies that collect a hefty portion of their revenue from Ohio, are hurting the most Monday, plunging even further after being downgraded to neutral from positive by Susquehanna.